Meesho narrows operating-margin gap but remains loss-making
Revenue grew 11.28% QoQ as expenses rose 10.75%, improving operating margin by 0.50 percentage points, though it remained at -5.55%.
Filed 28 Oct 2026, 17:06 IST · after market close · Meesho Ltd (MEESHO)
Key takeaways
- Consolidated revenue rose 11.28% QoQ, but Meesho still reported a -5.55% operating margin.
- Net loss improved only 0.29% QoQ to Rs 132.45 cr despite the higher revenue.
- Meesho's operating margin was 18.57 percentage points below the 13.02% median of 84 reported Consumer Discretionary peers.
Price around the results
Revenue grew faster than expenses, but losses persisted
In consolidated results, revenue increased 11.28% QoQ while expenses rose 10.75%. That gap improved operating margin by 0.50 percentage points to -5.55%, although the operating loss was still Rs 229.16 cr. Net loss narrowed only 0.29% QoQ to Rs 132.45 cr.
Other income reduced the loss without creating operating profit
Other income of Rs 127.42 cr partly offset the operating loss, but profit before tax remained negative at Rs 123.27 cr. Other income represented -103.37% of pre-tax profit, underscoring that the reported result was not supported by operating earnings. A tax expense of Rs 9.18 cr produced a -7.45% tax rate, compared with 0% in Q1FY27, adding to the net loss.
Margin has improved for four straight quarters but remains near the sector's lower end
Operating margin improved from -15.32% in Q3FY26 to -7.22% in Q4FY26, -6.05% in Q1FY27 and -5.55% in Q2FY27. Even after that sequential improvement, Meesho ranked sixth from the bottom among 84 Consumer Discretionary companies that had reported, with a margin 18.57 percentage points below the sector median of 13.02%.
Results were filed after market close
The consolidated Q2FY27 results were filed after market close, so there is no current-session stock reaction to assess. Across the three most recent results reactions, the stock rose once and fell twice, with a median absolute move of 1.96%.
Q2FY27 at a glance
Consolidated figures as filed with NSE — filed ahead of third-party databases, not yet independently cross-checked.
| Line item | Q2FY27 | Q1FY27 | QoQ |
|---|---|---|---|
| Revenue | ₹4,132 cr | ₹3,713 cr | +11.28% |
| Other income | ₹127 cr | ₹114 cr | +12.18% |
| Expenses | ₹4,361 cr | ₹3,937 cr | +10.75% |
| Operating profit | ₹-229 cr | ₹-225 cr | -2.01% |
| Operating margin (%) | -5.55% | -6.05% | — |
| Interest | ₹1 cr | ₹2 cr | -35.21% |
| Depreciation | ₹20 cr | ₹20 cr | +2.44% |
| Profit before tax | ₹-123 cr | ₹-133 cr | +7.20% |
| Tax | ₹9 cr | ₹0 cr | — |
| Net profit | ₹-132 cr | ₹-133 cr | +0.29% |
| EPS (₹) | ₹-0.28 | ₹-0.28 | +0.00% |
Operating margin of -5.55% compares with a Consumer Discretionary sector median of 13.02% across 84 peers that have reported Q2FY27.
What to watch
- Whether revenue growth remains above the 10.75% expense-growth rate recorded in Q2FY27.
- Whether operating margin improves from -5.55% for a fifth consecutive quarter.
- Whether other income remains near Rs 127.42 cr while operating profit is negative.